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Autoliv Strengthens Position in Airbag Inflators

23 February 1999

Autoliv Strengthens Position in Airbag Inflators

    STOCKHOLM, Sweden, Feb. 23 -- Autoliv Inc.
, a worldwide leader in automotive safety systems, has
exercised its option to increase the company's holding from 51% to 66% in the
French airbag inflator company Livbag.  At the same time, an agreement was
reached with Livbag's minority owner SNPE that gives Autoliv the right to
acquire -- and SNPE the right to sell -- the remaining Livbag shares in two
steps by the years 2001 and 2003.  In tandem with this agreement, a supply and
a cooperation contract has been signed for airbag propellants from SNPE to
Livbag and Autoliv.
    With Euro 230 million (approx. $300 million) in sales to Autoliv and
external customers, Livbag is one of the world's leading manufacturers of
inflators for airbags and micro gas generators for seat belt pretensioners.
Livbag includes the wholly-owned subsidiary NCS, a leading producer of airbag
initiators (which ignite the propellant in an airbag inflator).

    -- This acquisition makes it easier to carry through our global
       standardization program for airbag inflators, explained Autoliv's
       Chairman Gunnar Bark.

    -- Although our European inflator production is sizeable, our U.S.
       inflator manufacturing is even more significant.  With the
       strengthening of Autoliv's position in Livbag, a more efficient
       coordination of R&D, purchasing and manufacturing between our U.S. and
       European inflator segments can be achieved, concludes Gunnar Bark.

    Autoliv Inc. develops and manufactures automotive safety systems for all
major automotive manufacturers in the world.  The company has 60 wholly-owned
subsidiaries and joint ventures with more than 20,000 employees in 28
vehicle-producing countries.  In addition, the company has eight technical
centers around the world, including 19 test tracks, more than any other
automotive safety supplier.  Sales in 1998 amounted to close to US
$3.5 billion and net income to US $188 million.  The company's shares are
listed on the New York Stock Exchange , its Swedish Depositary
Receipts on the Stockholm Stock Exchange (SSE: ALIV) and its stock options on
the Chicago Board Options Exchange (CBOE: ALV.)

    CONTACT:  Gunnar Bark, Chairman, +46-8-58-72-06-60, or Mats Odman, Dir.
Corp. Com., +46-8-58-72-06-23, or mobile, +46-708-32-09-33, or Barry Murphy,
Director Investor Relations, 248-475-0409, all of Autoliv Inc.